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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

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FORM 10-Q

|/x/ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ---------------------------------------------------------------------------------------

For the quarterly period ended February 28, 2001

or

|/ / | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period
from  to
|--- | ---------------------------------------------------------------------------------------------------------------------------

Commission File Number: 0-12395

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ALCIDE CORPORATION

DelawareState or other jurisdiction of incorporation
or organization

22-2445061(IRS Employer Identification No.)8561 154th Avenue North East, Redmond WA(Address of principal executive offices)

98052(zip code)


Registrant's telephone number, including area code(425) 882-2555

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes /x/  No / /

Indicate
the number of shares outstanding of each of the issuer's classes of common stock, as of February 28, 2001: 2,619,236, net of Treasury Stock.

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ALCIDE CORPORATION    INDEX

|                                                                                              |  |                                                                                                                                       |  | Page
|--------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|PART I.                                                                                       |  | FINANCIAL INFORMATION                                                                                                                 |  |     
|Item 1. Financial Statements                                                                  |  |                                                                                                                                      
|                                                                                              |  | Consolidated Condensed Balance SheetsFebruary 28, 2001 (Unaudited) and May 31, 2000                                                  |  | 3   
|                                                                                              |  | Unaudited Consolidated Condensed Statements of Operationsfor the three and nine months ended February 28, 2001 and February 29, 2000 |  | 4   
|                                                                                              |  | Consolidated Condensed Statements of Changes in Shareholders' Equity                                                                  |  | 5   
|                                                                                              |  | Unaudited Consolidated Condensed Statements of Cash Flowsfor the nine months ended February 28, 2001 and February 29, 2000           |  | 6   
|                                                                                              |  | Notes to Unaudited Consolidated Condensed Financial Statements                                                                        |  | 7   
|Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |  | 10                                                                                                                                   
|Item 3. Legal Proceeding                                                                      |  | 12                                                                                                                                   
|PART II.                                                                                      |  | OTHER INFORMATION                                                                                                                     |  |     
|Item 6. Exhibits and Reports on Form 8-K                                                      |  | 13                                                                                                                                   
|SIGNATURE                                                                                     |  | 14                                                                                                                                   

2

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ALCIDE CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS

|                                           |                                                                                                                                                                                    | February 28, 2001                                |                                                 | May 31, 2000 |           
|------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------ | ----------------------------------------------- | ------------ | ----------
|
|Assets:                                    |                                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           | Current assets:                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           |                                                                                                                                                                                    | Cash and cash equivalents                        |                                                 | $            | 1,932,966 
|                                           |                                                                                                                                                                                    | Accounts receivabletrade                        |                                                 |              | 2,165,288 
|                                           |                                                                                                                                                                                    | Inventory                                        |                                                 |              | 2,623,834 
|                                           |                                                                                                                                                                                    | Deferred and prepaid income taxes                |                                                 |              | 562,607   
|                                           |                                                                                                                                                                                    | Components and spare parts                       |                                                 |              | 384,807   
|                                           |                                                                                                                                                                                    | Prepaid expenses and other current assets        |                                                 |              | 300,307   
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           |                                                                                                                                                                                    |                                                  | Total current assets                            |              |           
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           | Equipment and leasehold improvements:                                                                                                                                              |                                                  |                                                 |              |           
|                                           |                                                                                                                                                                                    | Sanova plant assets                              |                                                 |              | 11,006,000
|                                           |                                                                                                                                                                                    | Office equipment                                 |                                                 |              | 365,965   
|                                           |                                                                                                                                                                                    | Laboratory, manufacturing equipment and vehicles |                                                 |              | 236,726   
|                                           |                                                                                                                                                                                    | Leasehold improvements                           |                                                 |              | 73,483    
|                                           |                                                                                                                                                                                    | Less: Accumulated depreciation and amortization  |                                                 |              | (2,811,590
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           |                                                                                                                                                                                    |                                                  | Total equipment and leasehold improvements, net |              |           
|                                           | Deferred income tax asset                                                                                                                                                          |                                                  |                                                 | 406,061      |           
|                                           | Goodwill and other intangibles, net                                                                                                                                                |                                                  |                                                 | 511,453      |           
|                                           | Long term investments and other assets                                                                                                                                             |                                                  |                                                 | 585,353      |           
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|Total Assets                               |                                                                                                                                                                                    | $                                                | 18,343,260                                      |              | $         
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|Liabilities and Shareholders' Equity:      |                                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           | Current liabilities:                                                                                                                                                               |                                                  |                                                 |              |           
|                                           |                                                                                                                                                                                    | Accounts payable                                 |                                                 | $            | 716,617   
|                                           |                                                                                                                                                                                    | Accrued expenses                                 |                                                 |              | 655,086   
|                                           |                                                                                                                                                                                    | Unearned revenue                                 |                                                 |              | 172,496   
|                                           |                                                                                                                                                                                    | Loan payable                                     |                                                 |              | 1,000,000 
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           |                                                                                                                                                                                    |                                                  | Total current liabilities                       |              |           
|                                           | Long term payable to Novus                                                                                                                                                         |                                                  |                                                 |             |           
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|Total Liabilities                          |                                                                                                                                                                                    |                                                  | 2,544,199                                       |              |           
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|Commitments and Contingencies:             |                                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           | Redeemable Class "B" Preferred Stock
noncumulative convertible $.01 par value:
authorized 10,000,000 shares;
issued and outstanding: May 31, 200072,525
February 28, 200172,525 |                                                  |                                                 | 190,377      |           
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           | Shareholders' equity:
Class "A" Preferred Stockno par value:
authorized 1,000 shares;
issued and outstanding: May 31, 2000138
February 28, 2001138                              |                                                  |                                                 | 18,636       |           
|                                           | Common Stock $.01 par value:
authorized 100,000,000 shares;
issued and outstanding: May 31, 20002,904,068
February 28, 20013,000,195                                             |                                                  |                                                 | 30,002       |           
|                                           | Treasury stock at cost                                                                                                                                                             |                                                  |                                                 | (7,283,165   | )         
|                                           | Additional paid-in capital                                                                                                                                                         |                                                  |                                                 | 21,019,131   |           
|                                           | Retained earnings                                                                                                                                                                  |                                                  |                                                 | 1,824,080    |           
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|                                           |                                                                                                                                                                                    |                                                  | Total Shareholders' Equity                      |              |           
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           
|Total Liabilities and Shareholders' Equity |                                                                                                                                                                                    | $                                                | 18,343,260                                      |              | $         
|                                           |                                                                                                                                                                                    |                                                  |                                                 |              |           

See notes to Unaudited Consolidated Condensed Financial Statements.

3

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ALCIDE CORPORATION  UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

|                                                          |                                       | For the Three Months Ended
February 28 and 29, |           | For the Nine Months Ended
February 28 and 29, |          
|--------------------------------------------------------- | ------------------------------------- | ---------------------------------------------- | --------- | --------------------------------------------- | ---------
|
|NET SALES                                                 |                                       | $                                              | 4,158,786 |                                               | $        
|Expenditures                                              |                                       |                                                |           |                                               |          
|                                                          | Cost of goods sold                    |                                                |           | 2,051,673                                     |          
|                                                          | Research and development expense      |                                                |           | 560,481                                       |          
|                                                          | Consulting expense to related parties |                                                |           | 24,000                                        |          
|                                                          | Other selling, general/administrative |                                                |           | 1,177,231                                     |          
|                                                          |                                       |                                                |           |                                               |          
|                                                          |                                       | Total Expenditures                             |           |                                               | 3,813,385
|                                                          |                                       |                                                |           |                                               |          
|Operating income (loss)                                   |                                       |                                                | 345,401   |                                               |          
|Interest, net                                             |                                       |                                                | 36,187    |                                               |          
|Other income                                              |                                       |                                                | 13,263    |                                               |          
|                                                          |                                       |                                                |           |                                               |          
|Income (loss) before provision (benefit) for income taxes |                                       |                                                | 394,851   |                                               |          
|Provision (benefit) for income taxes                      |                                       |                                                | 143,331   |                                               |          
|                                                          |                                       |                                                |           |                                               |          
|Net income (loss)                                         |                                       | $                                              | 251,520   |                                               | $        
|                                                          |                                       |                                                |           |                                               |          
|Basic earnings (loss) per common share                    |                                       | $                                              | .10       |                                               | $        
|                                                          |                                       |                                                |           |                                               |          
|Diluted earnings (loss) per common share and equivalents  |                                       | $                                              | .09       |                                               | $        
|                                                          |                                       |                                                |           |                                               |          
|Weighted average common shares outstanding                |                                       |                                                | 2,594,306 |                                               |          
|Weighted average common shares & common share equivalents |                                       |                                                | 2,697,522 |                                               |          

See
Notes to Unaudited Consolidated Condensed Financial Statements.

4

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ALCIDE CORPORATION  CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

|                                           |  | Class "A" Preferred
Stock |  |   |        |  |           |  |   | Common Treasury Stock |  |   |            |  |         
|------------------------------------------ |  | ------------------------- |  | - | ------ |  | --------- |  | - | --------------------- |  | - | ---------- |  | --------
|
|
|
|Balance May 31, 2000                       |  | 138                       |  | $ | 18,636 |  | 2,904,068 |  | $ | 29,040                |  | $ | 19,832,668 |  | (384,425
|Exercise of stock options                  |  |                           |  |   |        |  | 15,027    |  |   | 150                   |  |   | 93,600     |  |         
|Stock issued for officers' bonuses         |  |                           |  |   |        |  | 13,488    |  |   | 135                   |  |   | 225,265    |  |         
|Tax benefit from exercise of stock options |  |                           |  |   |        |  |           |  |   |                       |  |   | 56,406     |  |         
|Net Income                                 |  |                           |  |   |        |  |           |  |   |                       |  |   |            |  |         
|                                           |  |                           |  |   |        |  |           |  |   |                       |  |   |            |  |         
|Balance August 31, 2000                    |  | 138                       |  | $ | 18,636 |  | 2,932,583 |  | $ | 29,325                |  | $ | 20,207,939 |  | (384,425
|Exercise of stock options                  |  |                           |  |   |        |  | 12,142    |  |   | 122                   |  |   | 80,755     |  |         
|Tax benefit from exercise of stock options |  |                           |  |   |        |  |           |  |   |                       |  |   | 96,047     |  |         
|Net Income                                 |  |                           |  |   |        |  |           |  |   |                       |  |   |            |  |         
|                                           |  |                           |  |   |        |  |           |  |   |                       |  |   |            |  |         
|Balance November 30, 2000                  |  | 138                       |  | $ | 18,636 |  | 2,944,725 |  | $ | 29,447                |  | $ | 20,384,741 |  | (384,425
|Exercise of stock options                  |  |                           |  |   |        |  | 55,470    |  |   | 555                   |  |   | 245,463    |  |         
|Tax benefit from exercise of stock options |  |                           |  |   |        |  |           |  |   |                       |  |   | 289,387    |  |         
|Purchase Treasury Stock                    |  |                           |  |   |        |  |           |  |   |                       |  |   |            |  | (5,000  
|Transferred stock to ESOP                  |  |                           |  |   |        |  |           |  |   |                       |  |   |            |  | 8,466   
|Issued stock warrants                      |  |                           |  |   |        |  |           |  |   |                       |  |   | 99,540     |  |         
|Net Income                                 |  |                           |  |   |        |  |           |  |   |                       |  |   |            |  |         
|                                           |  |                           |  |   |        |  |           |  |   |                       |  |   |            |  |         
|Balance February 28, 2001                  |  | 138                       |  | $ | 18,636 |  | 3,000,195 |  | $ | 30,002                |  | $ | 21,019,131 |  | (380,959
|                                           |  |                           |  |   |        |  |           |  |   |                       |  |   |            |  |         

See notes to Unaudited Consolidated Condensed Financial Statements.

5

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ALCIDE CORPORATION UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

|                                                   |                                                                                          | For the Nine Months Ended February 28 and 29,        |                                          
|-------------------------------------------------- | ---------------------------------------------------------------------------------------- | ---------------------------------------------------- | -----------------------------------------
|
|Operating Activities:                              |                                                                                          |                                                      |                                          
|                                                   | Net income (loss)                                                                        |                                                      | $                                        
|                                                   | Adjustments to reconcile net income (loss) to net cash provided by operating activities: |                                                      |                                          
|                                                   |                                                                                          | Depreciation                                         |                                          
|                                                   |                                                                                          | Amortization of investment premiums/goodwill         |                                          
|                                                   |                                                                                          | Stock bonus to officers                              |                                          
|                                                   |                                                                                          | Common stock issued to employee stock ownership plan |                                          
|                                                   |                                                                                          | Deferred income taxes                                |                                          
|                                                   |                                                                                          | Decrease (increase) in assets:                       |                                          
|                                                   |                                                                                          |                                                      | Inventory                                
|                                                   |                                                                                          |                                                      | Accounts receivabletrade                
|                                                   |                                                                                          |                                                      | Prepaid income taxes                     
|                                                   |                                                                                          |                                                      | Prepaid expenses and other current assets
|                                                   |                                                                                          |                                                      | Long term investments and other assets   
|                                                   |                                                                                          | Increase (decrease) in liabilities:                  |                                          
|                                                   |                                                                                          |                                                      | Accounts payable                         
|                                                   |                                                                                          |                                                      | Accrued expenses                         
|                                                   |                                                                                          |                                                      | Unearned revenue                         
|                                                   |                                                                                          |                                                      | Other liabilities                        
|                                                   |                                                                                          |                                                      |                                          
|Net cash provided by operating activities          |                                                                                          |                                                      | 3,070,567                                
|                                                   |                                                                                          |                                                      |                                          
|Cash Flows from Investing Activities:              |                                                                                          |                                                      |                                          
|                                                   | Goodwill and other intangibles                                                           |                                                      |                                          
|                                                   | Acquisition of equipment                                                                 |                                                      |                                          
|                                                   |                                                                                          |                                                      |                                          
|                                                   | Net cash used in investing activities                                                    |                                                      |                                          
|                                                   |                                                                                          |                                                      |                                          
|Cash Flows from Financing Activities:              |                                                                                          |                                                      |                                          
|                                                   | Purchase of Alcide Common Stock and redemption of Class "A" Preferred stock              |                                                      |                                          
|                                                   |                                                                                          | Short term borrowing                                 |                                          
|                                                   |                                                                                          | Stock options exercised                              |                                          
|                                                   |                                                                                          |                                                      |                                          
|                                                   |                                                                                          | Net cash provided by (used in) financing activities  |                                          
|                                                   |                                                                                          |                                                      |                                          
|                                                   | Net increase (decrease) in cash and cash equivalents                                     |                                                      |                                          
|                                                   | Cash and cash equivalents at beginning of period                                         |                                                      |                                          
|                                                   |                                                                                          |                                                      |                                          
|                                                   | Cash and cash equivalents at end of period                                               |                                                      | $                                        
|                                                   |                                                                                          |                                                      |                                          
|Supplemental Disclosures of Cash Flow Information: |                                                                                          |                                                      |                                          
|                                                   | Cash paid during the period for interest                                                 |                                                      | $                                        
|                                                   | Cash paid during the period for income taxes                                             |                                                      | $                                        

See
notes to Unaudited Consolidated Condensed Financial Statements.

6

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ALCIDE CORPORATION  NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1.  Basis of Presentation

In the opinion of management, the accompanying unaudited financial statements of Alcide Corporation (the "Company") as of and for the three and nine month
periods ended February 28, 2001 and February 29, 2000 have been prepared in accordance with the instructions to Form 10-Q. Certain information and disclosures normally
included in notes to financial statements have been condensed or omitted according to the rules and regulations of the Securities and Exchange Commission, although the Company believes that the
disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed financial statements should be read in conjunction with the financial statements
contained in the Company's Annual Report on Form 10-K for the year ended May 31, 2000. In the opinion of management, the accompanying unaudited condensed financial statements contain all
adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation. The results of operations for the nine month periods are not necessarily indicative of the
results to be expected for the full year.

2.  Inventory consisted of the following:

|                                   |  | February 28, 2001 |           | May 31, 2000
|---------------------------------- |  | ----------------- | --------- | ------------
|Finished products                  |  | $                 | 1,343,915 |             
|Raw materials                      |  |                   | 590,549   |             
|Sanova inventory at customer sites |  |                   | 689,370   |             
|                                   |  |                   |           |             
|Total                              |  | $                 | 2,623,834 |             
|                                   |  |                   |           |             

On
February 1, 2001, the Company purchased the assets of Universal Marketing Services, Inc. (UMS). The assets acquired included inventory sold to UMS by the Company in
prior periods. The inventory purchased was recorded at its fair market value of $1,154,467. At the end of February, $1,105,588 of this inventory remained in "finished products".

3.  Accounts ReceivableTrade consisted of the following:

|                            |  | February 28, 2001 |           | May 31, 2000
|--------------------------- |  | ----------------- | --------- | ------------
|IBA, Inc.                   |  | $                 | 72,648    |             
|UMS, Inc.                   |  |                   |          |             
|Other Domestic Distributors |  |                   | 115,216   |             
|International Distributors  |  |                   | 499,617   |             
|Sanova Customers            |  |                   | 1,384,759 |             
|Other Receivables           |  |                   | 93,048    |             
|                            |  |                   |           |             
|Total Accounts Receivable   |  | $                 | 2,165,288 |             
|                            |  |                   |           |             

On
February 1, 2001, UMS owed the Company $636,401. This amount was netted against the payment needed to purchase UMS' inventory.

4.  Goodwill

On February 1, 2001, the Company purchased assets from Universal Marketing Services, Inc. for a total purchase price of $1,676,802. The purchase
price consisted of cash less balance of accounts receivable from UMS and a warrant to purchase 7,000 shares of the Company's Common Stock. The warrant has been valued at $99,540 using the
Black-Scholes model. The purchase price was allocated to

7

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the acquired assets (inventory and intangible assets) based on their fair market value and the residual was recorded as goodwill. Goodwill and other intangible assets will be amortized over a
48 month period.

5.  Unearned Revenue

In November, 2000, Alcide agreed to terminate a distribution contract with its animal health distributor in France. The contract contained a
take-or-pay arrangement for fiscal year 2001. In exchange for eliminating this arrangement the distributor paid Alcide $517,489. One-third of this amount was
recognized as revenue in the second quarter. Another third was recognized in the third quarter. The remaining $172,496 (unearned revenue on the Balance Sheet) will be recognized in the fourth quarter,
at which point the distribution agreement ends.

6.  Loan Payable

On February 21, 2001, the Company took an initial draw of $1 million on its $10 million unrestricted line of credit with US Bank. The
principal draw is due August 31, 2001. The interest rate is approximately 6.56% and interest is paid monthly.

7.  Taxes

The income tax provision for the nine month period ended February 28, 2001 consisted of:

Federal income taxes

$
638,495State income taxes

$
67,809Total taxes

$
706,304


8.  Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per
share is computed by dividing net income by the weighted average number of common shares and common stock equivalents outstanding during the period. Common stock equivalents of the Company include the
dilutive effect of outstanding stock options.

Basic
and Diluted earnings per share were calculated as follows:

|                                                                                                                                                                 |  | Three Months Ended February 28 and 29, |           | Nine Months Ended February 28 and 29, |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------- | --------- | ------------------------------------- | -
|
|Net income (loss)                                                                                                                                                |  | $                                      | 251,520   |                                       | $
|Weighted average number of Common Shares outstanding                                                                                                             |  |                                        | 2,594,306 |                                       |  
|Basic earnings (loss) per share                                                                                                                                  |  | $                                      | .10       |                                       | $
|Assuming exercise of options reduced by the number of shares which could have been purchased with the proceeds from exercise of such options (Ø if antidilutive) |  |                                        | 103,216   |                                       |  
|                                                                                                                                                                 |  |                                        |           |                                       |  
|Weighted average Common Shares outstanding and Common Share equivalents                                                                                          |  |                                        | 2,697,522 |                                       |  
|                                                                                                                                                                 |  |                                        |           |                                       |  
|Diluted earnings (loss) per share                                                                                                                                |  | $                                      | .09       |                                       | $

8

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9.  Orders for Future Delivery

At February 28, 2001 and February 29, 2000 the Company had orders for future delivery of $788,537 and $1,440,454. The $788,537 orders for future
delivery are scheduled for shipment during the period
March, 2001 through June, 2001. Data for both years excludes expected sales of Sanova to the poultry industry because contracts with Sanova customers do not require placement of purchase orders for
future delivery. Sanova sales are based on product usage reported by the customers after the fact.

10. Segment Information

The Company adopted Statement of Financial Accounting Standards No. 131 (SFAS 131) "Disclosures about Segments of an Enterprise and Related
Information," during 1998. Following the provisions of SFAS 131, the Company is reporting segment information in the same format as reviewed by the Company's management (the "Management
Approach"), which is organized around differences in products and services. During fiscal 2001, management determined that due to the growth of the Company's Sanova business, the Company now has two
reportable segments, Animal Health and Surface Disinfectants, and Sanova Food Antimicrobial Products.

The
Company's reportable segments are strategic business units that offer similar products but to entirely different customers at substantially different selling price and cost of
goods sold structure.

The
accounting policies of the segments are the same as those described in Note 2Summary of Significant Accounting Policies, in the Company's
Form 10-K. The Company evaluates performance based on gross margin from the sale of each segment's products and does not allocate expenses beyond gross margin to the two segments.

Segment
net sales, gross margin and assets are as follows:

|                          |                           | Three Months Ended |            | Nine Months Ended |  
|------------------------- | ------------------------- | ------------------ | ---------- | ----------------- | -
|
|Animal Health             |                           |                    |            |                   |  
|                          | Net Sales                 |                    | $          | 1,881,585         |  
|                          | Gross Margin              |                    | $          | 1,118,959         |  
|                          | Assets (at end of period) |                    | $          | 3,232,775         |  
|Sanova                    |                           |                    |            |                   |  
|                          | Net Sales                 |                    | $          | 2,277,201         |  
|                          | Gross Margin              |                    | $          | 988,154           |  
|Assets (at end of period) |                           | $                  | 11,137,398 |                   | $
|Not Segment Related       |                           |                    |            |                   |  
|                          | Assets (at end of period) |                    | $          | 3,973,087         |  
|Total                     |                           |                    |            |                   |  
|                          | Net Sales                 |                    | $          | 4,158,786         |  
|                          | Gross Margin              |                    | $          | 2,107,113         |  
|Assets (at end of period) |                           | $                  | 18,343,260 |                   | $

Assets
assigned to the business segments include accounts receivable, inventories, fixed assets, spare parts, components and goodwill.

9

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PART I.

ITEM 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

Introduction

Alcide Corporation (the "Company") is a Delaware Corporation organized in 1983 which has its executive offices and research laboratories at 8561 154th Avenue
N.E., Redmond, Washington 98052.

Alcide
is engaged in the research, development and commercialization of unique chemical compounds having intense microbiocidal activity. The Company holds substantial worldwide rights
to its discoveries through various patents, patent applications, trademarks and other intellectual property, technology, and know-how.

This
report includes forward-looking statements which involve risk and uncertainty including, without limitation, risk of dependence on patents and trademarks, third party suppliers,
market acceptance of and demand for the Company's products, distribution capabilities, development of technology and regulatory approval thereof. Sentences or phrases that use the words such as
"believes," "anticipates," "hopes," "plans," "may," "can," "will," "expects," and others, are often used to flag such forward-looking statements, but their absence does not mean a statement is not
forward-looking. Such statements reflect management's current opinion and are designed to help readers understand management's thinking. By their very nature, however, such statements are subject to
certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which
speak only as of the date hereof. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after
the date hereof, or to reflect the occurrence of unanticipated events.

Financial Condition and Results of Operations

The Company's financial condition and results of operations for the quarter and nine month period ending February 28, 2001 were impacted by Alcide's
agreement to purchase the assets of Universal Marketing Services, Inc. (UMS) on February 1, 2001. UMS' inventory and intangible assets were purchased for cash plus warrants to purchase
7,000 shares of Alcide Common Stock. The cash payment was reduced by the amount of accounts receivable owed to Alcide by UMS on the date of acquisition. In anticipation of the acquisition, Alcide
curtailed its shipments to UMS in an effort to reduce UMS' inventory of Alcide produced products prior to February 1. In summary, the transaction with Universal Marketing Services, Inc.
had the following impact on third quarter results:



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Net
sales of $4,158,786 for the quarter and $13,097,993 for the nine month period ending February 28, 2001 were 45% and 54% higher than for the respective periods last year.

|                                        |  | Three Months Ended |           | Nine Months Ended
|--------------------------------------- |  | ------------------ | --------- | -----------------
|
|Animal Health and Surface Disinfectants |  | $                  | 1,881,585 |                  
|Sanova Food Antimicrobial               |  |                    | 2,277,201 |                  
|                                        |  |                    |           |                  
|Total                                   |  | $                  | 4,158,786 |                  
|                                        |  |                    |           |                  

Sales
of Sanova food antimicrobial to the poultry industry totaled $2,277,201 for the quarter, an increase of $1,281,680 compared to the fiscal third quarter last year, and $345,607,
18% higher than this year's second quarter sales, as this new Alcide business continued to expand rapidly. Twenty-seven plants, processing approximately 4.7 billion pounds of poultry annually
and representing roughly 15% of the total U.S. chicken market, are utilizing the Sanova System to improve the quality of their product. Alcide has agreements for future installations at five plants,
bringing the total to 32 poultry plants under contract. Sanova sales for the nine month period ended February 28, 2001 were $5,946,177, an increase of $3,617,493 compared to the equivalent nine
month period last year.

The
Company's animal health and surface disinfectant sales for the quarter ended February 28, 2001 were $1,881,585, essentially the same as the $1,879,542 for the equivalent
quarter last year. Nine month sales of animal health and surface disinfectant products were $7,151,816, $970,218, 16% higher than the equivalent nine month period last year.

Cost
of goods sold were 49% of net sales for the quarter and 47% of net sales for the nine month period ended February 28, 2001. This is a substantial reduction from the 57% of
net sales during the quarter and 61% for the nine month period last year and reflects primarily a reduction in Sanova cost of goods.

Research
and development expenses for the quarter ended February 28, 2001 were $560,481 as compared to $356,468 for the same quarterly period last year. The increase in R&D
expenses for the quarter is primarily due to outside testing to support regulatory approvals for Sanova use on meat. Research and development expenditures for the nine month period were $1,355,012, a
4% increase over the $1,309,110 during the equivalent nine month period last year. The R&D expenses last year were heavily oriented toward development of Sanova for poultry, while expenditures this
year relate primarily to the development of Sanova for red meats and to support product development and regulatory activity for the Company's animal health product line.

Other
selling, general and administrative expenses were $1,177,231 for the quarter ended February 28, 2001, a 16% increase from the $1,012,148 for the third quarter last year.
Nine month expenses of $3,642,211 were 16% higher than for the equivalent period last year. The increases reflect cost incurred to establish the Alcide Food Safety operations and engineering office
and to recruit staff to replace engineering, design and startup services previously purchased from outside consultants.

Interest,
net was $36,187 for the quarter and $107,495 for the nine month period ended February 28, 2001 as compared to $60,372 and $201,742 for the respective periods a year
ago. The decreased amounts of interest result essentially from lower investable cash resources this year as compared to the equivalent periods a year ago. Also, the quarter and nine month periods this
year included $1,458 in interest expense, while no interest expense was incurred last fiscal year.

Liquidity and Capital Resources

The Company's cash, cash equivalents and U.S. Treasury investments (included in long term investments and other assets) totaled $2,434,469 on
February 28, 2001, an amount $137,490 higher than

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at the end of the previous fiscal year. The February 28, 2001 balance includes $1 million in cash resulting from a draw on the Company's $10 million line of credit.

Net
cash inflow provided by operating activities for the nine month period ended February 28, 2001 was $3,070,567, offsetting a $3,791,424 investment in the acquisition of
equipment primarily to support the expanding food safety business, and $138,750 to purchase Alcide Common Stock, offset by $420,645 in cash realized from the exercise of stock options.

Outlook







ITEM 3.  Legal Proceeding

None reportable.

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PART II.    OTHER INFORMATION

ITEM 6.  Exhibits and Reports on Form 8-K

None.

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SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

|                     |  | ALCIDE CORPORATIONThe Registrant
|-------------------- |  | --------------------------------
|Date: April 12, 2001 |  | By:                             

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